Property investment should be seen as a viable way to earn extra income
By MUHAMMAD HAKIM HASSAN
WHILE 68% of middle-income earners depend on the Employees Provident Fund (EPF) as their only source of income after retirement, there are those who look at alternative ways to wealth building besides fixed deposits, personal savings and insurance.
According to property investor Ken Teo, property investment should be seen as a viable way to earn extra income.
Quoting Department of Statistics figures, he said that workers who earn RM3,800 to RM8,300 may have to work even after retirement due to low amount of savings.
Teo said that it is important for young people to invest in something viable such as property rather than indulging themselves. The number of young people who fell into credit card debt or went bankrupt has been increasing.
Property investment may be overwhelming for some people but Teo reckons it is achievable with the right effort.
“You need background knowledge of the properties you are looking at. Timing plays a part but you must also analyse reviews before taking the plunge to buy a property,” he said in a talk titled “Real Estate Investment Strategy For Middle Class” at the recently held StarProperty. my Forum 2017.
During the event, three persons well-versed in the property business were invited to give their insights to help property owners and first-time buyers to grow their portfolio.
Besides Teo, the others were AJC Planning Consultants Sdn Bhd director Mahani Mohd Yasin and Leveragelab Sdn Bhd founder Jeevan Sahadevan.
Mahani spoke on “Sustainable planning increases township values”.
She mentioned that for a township to be much sought after, it has to adhere to certain criteria that attract potential buyers such as the facilities provided.
Mahani also said that although older properties situated closer to city centres would be popular with investors and homebuyers due to accessibility, properties that are on the outskirts of the Klang Valley would be a great investment because of the potential for value appreciation.
“For example, City of Elmina will be connected via the Damansara- Shah Alam Expressway (Dash), which can raise the value of the property on completion,” she said.
Jeevan spoke about protecting the investor’s value in his topic “How does property act as a buffer in your investment portfolio”.
The investment coach underlined the key factors that prospective investors could look into to grow their investment portfolio, including changing their behaviour such as being more diligent in order to improve their business acumen.
He said that understanding the context of the market is key to avoid blindly embarking on property investment.
The forum, sponsored by Sime Darby Property, was held at one of the developer’s latest townships, City of Elmina.